Myriad Sells Prenatal Testing Business to Labcorp for $210M Cash

summarizeSummary

Myriad agreed to sell its prenatal testing business (Prequel, Foresight, SneakPeek, FirstGene) to Labcorp for $210 million in cash plus inventory value, a deal worth roughly half its market cap that narrows the company to cancer testing and strengthens its balance sheet. Closing is expected by early 2027, subject to antitrust and state health care approvals.

check_boxKey Events · M&A and Partnerships · MYGN

• Prenatal Business Sold to Labcorp

  An Asset Purchase Agreement signed October 19, 2026 divests the Prequel, Foresight, SneakPeek and FirstGene tests to Laboratory Corporation of America for $210 million in cash plus the value of the business's inventory at closing.

• Cash Roughly Half of Market Value

  The $210 million in cash compares with a market capitalization of about $403 million — a substantial inflow for a company whose Q2 revenue missed by $15.3M and whose EBITDA outlook was suspended in July.

• Regulatory Conditions and Outside Date

  Closing requires HSR clearance, state health care approvals and third-party consents; the outside date is February 19, 2027, automatically extendable to October 19, 2027 if only regulatory clearances remain.

• $10.5M Reverse Termination Fee

  Labcorp must pay Myriad $10.5 million if the agreement terminates because required regulatory clearances are not obtained.

auto_awesomeAnalysis · MYGN · Life Sciences

Myriad is divesting its entire prenatal health franchise — Prequel, Foresight, SneakPeek and FirstGene — for $210 million in cash plus closing inventory value, a deal that reshapes the company around cancer testing. The price is roughly half of Myriad's entire market value, so the cash materially strengthens a balance sheet that has been under pressure: Q2 revenue missed by $15.3M, full-year guidance was cut, and the EBITDA outlook was suspended in July. Management says the deal is accretive to revenue growth and profitability, but the prenatal business is being handed off, so the remaining company is smaller and more concentrated in oncology. Closing is not assured — it needs HSR and state health care approvals, with an outside date of February 19, 2027 that can stretch to October 19, 2027, and Labcorp owes a $10.5M reverse termination fee if regulatory clearance fails. Myriad has said it will give more detail on the November 4, 2026 earnings call.